>> imnat trades that are unlucky, but you are hoping will turn around. >> stratus. >> first solar. >> long natural gas via san juan base and royalty trust. >> that's it for us. power lunch begins right now. >> halftime is over. power lynch and the second half of the trading day start right now. >> oh it's almost ugly there. we almost had an accident. tyler matheson here. welcome, everybody. almost got them there. whoa, baby. >> hello. i'm mandy drury. well, record breaker. the s&p popping into unchartered territory is currently sitting at 2,091. the dow is back up 18,000 earlier on today, and a 15-year high for the nasdaq. ty. >> and valley of measles. new information today about vaccination rates and the dangers out in silicon valley. >> and deep in the heart of texas throughout the big show we are going to be live in the lone

star state reporting on the impact of low oil on jobs and the economy in the great state of texas. first, let's get to bob in the heart of all the action down at the nyc. i can hear smashing in the background. all those records being smashed again today. i believe it's been the best two-week gain for the s&p in three months and i'm just looking at the leaders here. energy and materials are on fire. once again. >> at that level this will be a new historic closing high. we'll see if we get there here. intraday inteks for new highs, there's a bunch of them. the s&p 500 is an at intraday by semiconductor index, i mentioned this all week it's been at historic highs. midcaps have been historic highs.

the nasdaq is at a 15-year high. the russell is close to new highs as well. we'll be keeping an eye on that. leading the charge as mandy mentioned is energy and will we see brent up very strong this morning and close west texas intermediate. we get some of the more volatile names up. danbury, halliburton, bakers hoousz apache, anadarko, all of those names are up 2%, 5%, or 6%. this is what i mean when i say a growth bid to the market this week. look at this. tech materials, consumer discretionary are the big market leaders along with industrials and financials. what you don't see here is more of the defensive names that are out there. like you tilts. straight down the last month. a lot of creation. there's a lot of shorting going on. shares here are going up because traders are trying to short a utilities because they see higher rates coming.

>> the stock goes x dividend. i was quite surprised that zales didn't move much tiffany didn't move much. there wasn't a relationship on whether the economy was going up or down at the time. back to you, tyler. >> hat day, no? >> well i'm sorry.

>> there's a deadlock ahead of monday's euro group meeting. both sides say there is still hope for a debt deal and that hope is reflected in greece's market. over the past week it is up 11.25%. >> with the s&p 500 once again hitting an intraday high. while the u.s. market is doing well, the german dax is on fire. it's out performed the s&p year-to-date. it is up by 12%. should you be betting on the u.s. or germany at this stage? which you can do by the way, through etf's which mirror the performance of the dax. three of the biggest ones are dbgr and dxge.

great to see you there, bob. germany or the u.s. what say you? >> i think ewe very interested in what's going on in europe. we're seeing good strong gdp reports. you're seeing growth out of there. it's not going to come from the euro zone or uk or latin or south america. it's going to be coming from the united states. you know why go overseas if you are a retail investor and have an argument that's predicated on growth in the united states. if you are a professional investor like we are, we have dedicated portfolio managers that are focused just on europe and on other parts of the globe. >> germany's economy in the

fourth quarter 0.7%. more than double expected. now they've got qe. their own qe being unleashed. they've got that at their back for the entire euro zone where is our qe is already wound down. >> the economy might pick up and you might see economic activity as far as the banking demand is concerned, but i think, again, if you are a retail investor and you are working out of the back of a truck, it doesn't make a heck of a lot of sense to have an argument that's predicate odd growth coming from the united states to sort of put all your money on there or to have an overweight into that area.

>> it's going to stay -- keep rates low for a long time. >> about half of that leaves the euro zone. they're well positioned for growth. i think the latest gdp numbers reflect that they're starting to kick in. >> okay. we've got to leaf it will, guys. sorry. >> how much lower could they push interest rates before they go to negative rates? in many cases they're pushing the negative rate already. how aring going to encourage people to go out and secure a loan if they haven't already done it? i don't get that. >> final word to you, darren. >> i think the rates are going to stay low across the euro zone because they need to fuel growth. clearly that worked for the united states. i think that low rates won't fuel growth i think is a misconception. >> i think it has worked in the united states. sorry. >> thank you. >> you can also check out bob and darren's energy play. go to power lunch.cnbc.com and

see what the play they're talking about is for that sector. okay. let's get a little bit further south. brian sullivan is in galveston, texas, for power lunch today, and, brian i understand you have the weekly bakers hughes reet count. what kind of numbers are we looking at? >> down 84 oil rigs. we lost over 90, but that includes gas. oil is what we're dawg about. hello. the weekly drilling rig count fell again. down 84 for the oil rigs. now oil rigs down 367 from one year ago. this according to bakers hughes. canada added one rig. no real difference there. guys, i also just want to caution everybody. remember, huge difference between a rig and a well. rig is for future production. the current production is at an all-time high. 9.22 million barrels per day in america, guys. even with the decline in rig counts, it's still a record high for u.s. oil production. that's why we're here in galveston, texas. i'll tell you what we're doing in a bit. rig counts down 84 week-over-week. back to new jersey.

>> you point out, it is really the production that matters the most there. that is at a record high. let's move on now farther out west. fears of a measles outbreak now growing in silicon valley. this after health officials in san francisco say a linked in employee infected with the measles may have exposed tens of thousands of people commuting on the city's metro train system. scott cohen is in palo alto with the latest. hi, scott. >> a linked in employee up in san francisco has contracted the disease, and before it was apparent -- the east bay of san francisco. at least a couple of times during toward the end of the week around february 4th and

6th. ate in a san francisco restaurant, and so indeed many people may have been exposed. linked in says it's followed although protocols and notified all of its 7,000 employees around the world, and it's working with public health authorities. then there's the issue with the daycare centers. >> the herd imunit threshold that keeps us all protected. 92% vac tination rate. many say 95%. we have a google facility at 68%. a cisco facility at 59%. a lot of things could impact this, though. the companies say it's a snap shot in time and they're still working at parents to get their immunization records in. that's part of it. also, if the facility has a large concentration of infantsz that aren't vaccinated that could affect things. public health officials say you

have to look at the whole picture. not just individual facilities but in that area we are not not where we should be according to an infectious disease expert at ucla who says this measles outbreak could indeed grow and could indeed grow by here in silicon valley. tyler. >> thank you very much. scott cohen reporting. dominik chew now. market flash. >> tooil, what we're watching here is the big casino and gaming stocks. think las vegas sands, wyn resordz and mgm. can you see they're anywhere from 1 1/2% to three 1/2%. it notes there are favorable air traffic and trends developing for las vegas, and it adds that airline seat capacity is going into the city and it's showing the strongest growth since mid 2011. that could be a good driver of visitation to the city and core revenue trends specifically for those casinos. tyler, back to you. >> dom, thank you very much. airline business going strong. probably don't need to tell you that. delta employees receiving the largest profit-sharing payments

in company history. phil lal bow. >> he's numbers will probably surprise a few people but they shouldn't given the success that delta has enjoyed over the last several years, and in particular last year today the company announcing profit-sharing for all of its employees will total about $1.1 billion. that will be split amongst roughly 80,000 employees at delta. that works out to every employee on average getting about two months salary as part of the profit-sharing. i talk about delta being successful. look at the growth in profits over the last four years. they have had a huge run-up in particular 2013 to 2014. $4.5 billion. that's a heck of a move there in terms of pretax profits. now, some people will look at this and say, well sure gulf coast jet fuel prices have dropped over the last four years. therefore, it's going to help the bottom line.

take a look at shares of delta. most of the move is because of the fall in jet fuel prices but, mandy, this is the kind of news that people will look at and they'll say, boy, i remember it was less than ten years ago when richard anderson took over this company. he said be patient. eventually things will pay off. it's paying off today. back to you. >> it has paid off indeed. the shares just today down about 1.5%. thank you so much phil lebeau. well power lurching is back in texas. what does low oil mean for the local economies? better take it to a restaurant with prices get this, that are set by oil. stay tuned.

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continuing the slide after costco ended its 16-year relationship with the car giant. a costco exec is telling dow jones that the decision came down to costs and saving money for their customers. also, this morning bank of america and merrill lynch downgraded mx to underperform. it cut its price target to $78 a share. it was $109. mx shares are now down a total of 9% since that news broke. back to you. >> dom, thank you very much. conagra foods and the

company name the new ceo. there you see the stock price down 4.5% today. purchasing the organic food producer applegate farms. that deal pricing up to $1 billion. hormel has grown 23% over the past year auz see there. red progressin shares regaining lost ground after missing earnings and on the top and bottom lines. the stock had increased nearly 6% in the past 12 months. it's a little bit higher today. manned where i. >> let's get back down to brian in galveston, texas, since he has gone all that way. you have been taking a look at how one particular restaurant owner is cashing in. how is he doing this? >> well, there's a lot of comparisons to make in 1986 given the steep drop in oil. most people say it's not nearly the same economy as it was. he found awe way to go back to 1986 in a light-hearted way.

take a look at this. >> steve zimmerman has seen it all. oil booms and oil busts. >> i'll show you there's great stories. >> all from a his pip is the owner of one of houston's finest boutique hotels and restaurants, and he says that even though oil has fallen so far so fast this time it is nothing like the epic oil bust of 1986. >> there's a concern, i think, because all the headlines and media is talking about oil and the newspaper is saying let 2000 get off here and 2000 there. >> that's when the idea hit him. serve a lunch whose cost was based on the daily closing price of a barrel of oil. stwloo it's kind of a fun thing that they say, hey, the economy is going to go up or they will

be affected with oil prices. it is going to make us think a little built, but let's have some fun. >> the marketing mrou worked, and even during the tough times, he said he often had a line waiting to get in. two weeks ago he brought it back. only this time it's a $51 dinner instead of a $9 lunch. zimmerman acknowledges that oil may not be the be all end all it was back in the 198 0z but it is still a part of houston's dna. >> the major oil company in the world that's head quartered here for the host part and international banking is effectively -- the ten tickles of oil are all over the city. >> so guys kind of a semi light-hearted look. obviously steve is going back in time and resurrecting this.

it's reality a house. he founded a company called humble oil in humble texas. humble oil became a little little known thing about exxon. he does have the -- actually in the restaurant building. it's pretty cool. he was a great sport for hosting us. >> that's incredible. yeah. i love that. it's a ru sort of in terms of a corporation raising to riches story from very humble beginnings to well what it is today. >> now spending is about to be revved up. what cyber stocks are worth buying right now? all the pecks coming up on power lunch. >> then our crime and punishment series. >> casinos are known for having top security. how did a group of conmen walk

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>> prices are closing in london. gold is sitting at $12.28 to the up side by $7.70 an ounce, but we have had some ups and downs over the past five days leaving gold slightly lower for the week which would make it the third straight week of declines for that precious metal. as for some other metals let's take a look at silver. to the up side.

copper, slightly lower. paladium and platinum also moving higher. >> let's go to dominik chew for a quick marshall flash. >> mandy, the higher gold prices mean we're seeing those gold mining stocks head higher as well in today's trade. our daily check of those companies shows that some of the larger players, like numont mining are all trading to the up side. as are the market vekters, gold miners eff and the gdxj. back to you. >> i'll pick it up from there. rick santelli you are tracking all the action at the cme. ricky, what's happening in the bond picks today? >> well they're getting ready, of course, for a three-day weekend, and the market is being sold off ever so slightly. look at a two-day chart. we're not up to yesterday's high yields but we're getting close. open the chart up to the first day. you can see we see yields in

place. look at the dollar index for that same period since the last fed meaning. it's gone nowhere quick. maybe a little perspective is necessary. open that index xhart up for a 20-year chart, and even though we're at 11-year highs, we're a long way from the 120 high you see on that chart. tyler, mandy, back to you. >> plus internet stocks that benefit the most that the government starts pouring more money into the space. all that and more.

i'm bertha combs. it looks like atlantic city's luck may be changing. new date why shows the eight surviving casinos saw close to a 19% increase in revenue in january. the overall revenue from an internet bet, slot machines, and table games came in at $197

parking lot 5 million. there is an investigation into that the allegation that argentina's president was involved in a cover-up with iran. canada has its first case of mad cow in a beef cow. it was discovered in the province of alberta. no part of the cow reached human or animal feed systems. an update on a story we told you about last hour. have no fear alibaba workers won't get their bonuses lunar new year but they will get them later this year in april. we've been telling you about the big white house cyber security valley jarrett will tell us all about it. i'm bertha coombs. now back to power lunch. >> thank you very much. let's go to dominik chew. >> tyler, we're keeping an eye on shares of the health care partners. this is the provider of kidney dyalysis services that hosted better than expected profits and sales. it also reiterated its full-year outlook. the shares you can see are down by 5%.

the company is of particular interest to some investors because the company's biggest shareholder is warren buffett's brookshire hathaway which at the end of a third quarter had a near 18% stake. neck week we'll find out if the company added to or -- since mandatory holdings are due next week. those are known as s-13f filings. >> cyber security center stage today as president obama meets with tech leaders out at stanford university. about a half hour from now he is going to push for a more cohesive sharing of cyber threats between business and government. >> the summit is a step in the right direction but we still have a long way to go. he is back with us from london. james, welcome back. good to have you here. i think in the past week one of

the things that was most concerning to americans was this major breach of anthem health a health care company. people are very sensitive about anything that has to do with their health care records and so forth. >> it's a relatively small percentage that they might be doing for political reasons or the gathering of intellectual property. the credit card is the obvious path, but the kinds of data we're seeing in some of the more recent braechz such as the one you mentioned, could open up possibilities for very significant fraud. perhaps opening up a mortgage application in someone else's name using the combination of data and information like loss of a social security number. undoubtedly, there could be very

significant financial and social damage as a result of this kind of data loss and it's critical we see people holding this volume of valuable information doing more to protect it. >> he is with a lot of the top executives in silicon valley. of course, the history here has been -- has created a tender relationship. those companies very much feel irks think, that they may have been taken advantage of by certain programs that were you should the government's war on terror.

>> i think every company you have listed really understands the importance of protecting consumers. some unfortunately do it better than others. we've seen some occasions recently where for example, apple have struggled with protecting their customers tim cook has come out big and said it's really important that we practice excellence in cyber security. to me it's not so much about the government and those enterprises as every one of us listening to this program effecttive cyber security isn't something that the government alone can accomplish. it's sgnt that apple alone can do although they have their part. what's key is that every business from small businesses to large enterprises implement effective security, and every person listening to this program does their part as well. any one of us could be the way that the tashgers next get into

an organization and steal data. >> james. >> i'm looking for a broad spectrum here. >> thank you very much. always great to hear from you. we appreciate your being with us. james. mandy rsh. >> with all that's going on in the cyber security state which internet stocks stand to benefit the most if the government starts pouring more money into the space. let's bring in joe fishbin. >> there's a company called imperva protecting the databases, barracuda networks cuda, which is very important in the midmarket companies that are looking for security solutions. splunk, splk which is more around the analytics piece of analyzing the date wra from government and from the internet companies that you guys have already talked about. then the other company is paloalto networks which is probably the best and most

broadest security firm out there that has the best holistic solutions in the pashgt. >> it was the year of the breach. no one was safe. think of ailt although companies from target to dairy queen, the irs. in 2015 according to you, it's going to be the year of security spending. which companies have adapted the most to the way the attacks have also been adapting? >> well there's a company called fire eye, which feye. they have also looked at it from a security perspective from analyzing what is already happened. i think that the companies that are going to do the best are the ones that are in there blocking attack brz they happen. i think palo alto has done a good job in terms of developing technologies. i also think you are going to see mergers and acquisitions. some of the private companies in the space. he recently said at davos he expects that cisco will be one

of the largest security companies in the world. i think that will happen through m&a. i think you're going to see increased spending. you're going to see increased mergers and acquisitions as well. >> thank you very much. watching out for m&a. let's get a market flash where dominik chew. dom. >> it started off so promising today right now, but you can see here by what you see in the ticker at the bottom here stocks with the s&p 500 and dow have pretty much given up all of their gains today. if you take a look at the s&p, the dow jones -- we did hit a record intraday high of one point today. now we're just about flat. >> we'll see if we gain that back in the last couple of hours. >> is there anything in the news flow that would suggest a reason for this other than maybe we just ran out of steam and people are taking money off the table as we go into a long weekend? >> there hasn't been an evident catalyst. it wasn't like the market just

dropped off dramatically in the span of a minute or a second or something like that. what it does show you is that there is this steam, this momentum coming out of the marketplace right now. notable, though, today utilities, they're not a big part of the overall market but they have been laggard so far today. far and away the most -- we'll see if that changes given the fact that they've become more defensive as we head into the afternoon. >> i'm also wondering, i mean in recent weeks and even months we've started to see tighter correlation between stock market -- between the stock market and what crew crude has been doing. it's up today 2%. it was up over 3% earlier on in the day. crude has been losing steam over the last half hour. as have stocks. >> into power lunch we saw the defensive sectors like telecommunications utilities, those types of sectors really under perform.

now the question is as we start to turnover the overall market maybe now just flirting with losses, whether or not you start to see a bit more of a coming back to the more defensive sectors. the ones that are not as exposed to the ups and downs of the overall economy. we'll be watching utilities, telecom stocks very closely. of course, they're also interest rate sensitive as we all know. we'll watch the ten-year yield to see if that gives us any clues at all about the direction of those particular stocks as well. >> absolutely. we'll keep on watching the markets. in the meantime, let's jump aboard and take a look at the sect ors here. the ten s&p sectors right now, energy and materials are still the leaders. we're just looking over here. as you were mentioning utilities and also consumer staples and telecom that are the laying advisers right now.

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>> you see the s&p. >> you have roughly half in the green and the other half the bottom half in the red. 50-50. it doesn't get much more equal, mandy, than that. >> did you know though that historically friday the 15th 13th is historically better than most days. that's 50% of the time. sfwloolt push and pull and also hurting. >> both builders and realtors are worried, but it should take time for the oil prices to trickle down to houston's housing market. in previous oil down turns, it's taken 18 months to two years for the job losses to fact o into home prices. you know all eyes are on houston now. the leader with oil accounting for 5.6% of hoouts jobs but houston has benefitted dramatically from the run-up in

energy. in fact, as the rest of housing sputtered into recovery houston saw record home sales in 2014, and they're not slowing yet. single family houston home sales jumped 6% in january from a year ago. prices hit a record high of 7% from a year ago. the only problem they have now is supply barely two and a half months thanks to although demand. this is builders starting to get careful. kb homes ceo said last month the builder had pulled out of a couple of land transactions in the fourth quarter because of "sensitivity there." they claim they are not seeing any pullback yet by consumers within consumer david home kinz sold his houston area home last fall and feels like he timed the market just right. >> according to trulia in the

seven large metros where oil relate jobs are at least 2% of the togethers, home prize rose 10.5%ee year over year. that's a lot faster than the 7.7% increase for the 100 largest metros nationwide. plenty more on this on-line. brian. >> all right. thank you very much. >> everywhere you go around houston, you see these new developments. a couple of hundred homes popping up and they are names that our investor viewers know. mkm partners home building analysts. you are not an oil analyst, but how much are you now having to look at oil and the derivative impact of the price fall in modelling your homebuilder numbers? >> we're certainly paying a lot more attention to houston than we usually do.

>> our assumption is that houston could have a big decline this year. we're forecasting a 30% decline in starts and for the rest of texas maybe a little bit of a decline as well for the rest of the texas forecasting a 10% decline. that's the way you have to approach it to be conservative enough to look at the builders the right way. >> you know i'm going to use a number from one of your competitors, bob and rbc capital markets. he has his number at 16%. that is the percentage of all housing starts in america that originated in texas even though texas is only about 9% of the american population. how important has -- not just houston, but how important has all of texas been during this? >> >> homebuilder communities, it's probably even a little bit

bigger as community counts probably closer to the mid 20s in terms of their exposure to the texas market because it's been such a big grower. it is -- it's very important. you do have to put it in percent penkt. think about that 60% and put a -- with 10% decline in the texas market, that's only going to impact the national market by a couple of basis points. if we get something bigger than that, then we do have to worry that it's going to impact the overall growth rate. >> meagan just jumping in here some home builders have more exposure to texas than others. what are the implications of what your predictions are for the home builders in terms of buy, sell, or hold? >> yeah. so in general we're certainly seeing a lot more volatility in those texas-based builders. we have a lites out of all the texas builders their exposure to texas, but to houston. if you start to see a decline in texas start, diana said we haven't really seen it yet. if you start to see the weakness there, i would certainly be quite conservative about those

builders who have higher exposures to the texas market. right now, honestly i don't think you're seeing that much of a valuation mismatch with those more exposed to texas. i think that a lot of hope is priced into these builder stocks right now that it's not going to see a big decline. >> we're having a hope trade here, and we're not likely to get a lot of the more important data. i would think. not until the end of march or early april. right now i'm not panicking yet. sfwroo meagan how -- i'm having trouble hearing. how much do low interest rates mitigate any of this? >> especially around the fha and

fhsa. i think that on nashl basis could have an offsetting impact this year. your volumes could be relatively neutral on a national basis if those easing and lending standards kick in. >> we'll be back in a little bit. let's go now to dominik chew for a market flash where are. >> what we're doing right now is watching shares of green mountain coffee roasters. they are up now by about a quarter of a percent. they had been down markedly lower throughout the course of the trading day. this after coca-cola discloses that it is up its stake in keurig green mountain to 16% of shaerz outstanding. its prior disclosure was it had 12%. about a 4% boost to coke's overall stake in green mountain coffee. keurig green mountain. gmcr shares up on that bit of news. >> thank you very much. we're all over the big market meltdown.

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>> we've come off our highs. the bottom line is off the highs we sit near the lows for the day. i think one of the things factors that sort of brought us down a little bit was oil, if you take a look here moved down in the middle of the day on oil. put that up here. you can see. i think that was a factor. look at the xop. this is the expiration of production etf. this is where a lot of people are playing these days. i don't see a lot going on in the ten-year yield. still steady. art cashin is just walking by. come on in here. other than a move down in oil, anything else that you see that might -- >> pretty much. a little nudge up in yields, and i think that kind of took the steam out of it. people were talking about the drop in the rig count, but that's counter intuitive. the drop in the rig count has

pressure on oil. >> well ordinarily you do. as we discussed off camera day before a three-day weekend is historically noted to the buy side. the real iron where i is the one friday before three-day weekend is the one before president's day. >> okay. that's are this hour's power points. as obama addresses the nation's top technologists on cyber security attacks, we learn that globally these cost $that,

folks, is 1% of our global income. >> well, energy taking the lead in the s&p 50000 among the top gainers. pioneer and natural. >> if you missed any of the big stories, go visit our website at power lunch.cnbc.com. if you are looking for alternative ways to invest fine art continues to spike. sotheby's this week sold $200 million in contemporary works. the stand-out, this masterpiece gerhart richter. last time it sold for just $600,000. now $46.3 million. this rare self-portrait by

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if you experience a sudden decrease or loss in vision or hearing. ask your doctor if... ...viagra is right for you. at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. >> texas has contributed so much, housing, jobs wages, to the overall american story. all the next hour we're going to

tell you the residual effects of the oil price drop. what does it mean for houston and texas? what might it mean for america in general? got a great gives line-up for you, including one of the biggest restaurant owners in america. a billionaire. owns a golden nugget casino chain and about half of galveston, texas. all hour guys. walk through not just who oil is doing, but how it might trickle through or it might not. is everything okay even though oil is 50% from its highs, guys? there's a lot of stories to tell and we're going to do the best we can in the generous 60 minutes that they have allotted us in a couple of minutes. >> i didn't think anything was bigger than texas, but you have obviously proven us wrong. >> alaska. >> you have a different job

growth -- >> that is a very important point that you are making tyler, because, you know we've come on. i talked to i mean and said on twitter. oh, you moron. it's not goinging to affect the southwest economy. consumers are saving money. if texas slows down will it skew the data enough to make it appear that the american economy is slowing down because texas has contributed such an out sized impasse. put it this way. 8% to 9% of the population 23% of all jobs created in the last six years. >> yeah. i thought it was an absolutely amazing stat that meagan mcgrath, our guest just a moment ago on the housing market in houston, you know how she was predicted that maybe, what housing sales in houston could fall maybe 30% over the next year or so. just looking up stats that she gave us. she says that could be a drag on the national housing market by about 3%.

>> that could give a false read or maretive on what is happening with the overall economy. one quick anecdote. everybody rocks. we have a fantastic crew. our camera guy here sold his house in six hours. >> six hours? >> six hours. here in houston. a couple of weeks ago. what was that, joe, a couple of weeks ago? what's that? back in august. so six hours. he sold his house. >> all right. today we're going to try to find out. >> 2:00 in the eastern. 1:00 where you are, brian. it's been a great first week, and are you taking off a week. >> i am. >> a little vacation time. nice to you. >> a little bit of vacation time. back in a week's time. >> that's the first hour of power. now power continues with brian. he is right there. he is live in galveston. take it way, buddy. >> i'm still here. thank you very much, mandy and tyler. thank you.

sflo we're going to give you shocking stats about texas and how much it has mattered to the overall american economy and basically what's going to happen now that oil has come down 50% from its high. how about this? this is the fastest, steepest oil drop or one of the four in american history. we had it in 1986. we had it in 1990-1991. we had it in 2008, and now we have it once again. one of four times where we have lost 50% in just a matter of months. is there no negative impact from that? we're going to be here to find out. we have a great guest line-up for you all hour long. we have sarah eisen with us who is joining us from the nasdaq. sarah, welcome. >> thank you very much. good to see you all the way out there in texas, brian. >> absolutely. all right. >> i just want to point out we're also awaiting president obama, brian. he is going to be speaking this hour. >> all right. well, we could have some headlines there as well.

>> we're going to tell the macrostory, not just in texas. right now this hour really is focused on oil, and i believe we've got our -- do we have our guest? >> yes i'm here. >> all right. is there not any negative impact from a 50% drop in oil in a matter of months? >>. >> very, very negative. what we've seen is very difficult. i live in midland, texas, and it's extremely difficult on all the service companies within the permian basin. >> yeah. give us then the steps. the story we're trying to tell this hour larry, is not some dire story. not bad news.

fwloo it has a major effect within the economy, and there's a lot of other industries related to the oil and gas industry. drilling rigs. you have all the steel industry the chemical industry. housing. all the small towns surrounding midland, texas, that have exploded within the last five years. now you have a contraction going on, and many people being laid off. in 2008 and 2009 the shape of the curve then was like a v. in other words, the economy as a financial crisis we had at that point in time we had demand destruction within the economy -- within we thought perceived demand destruction. however the fundamentals were still in place, and so it

snapped back pretty quick. in this situation -- >> larry, do you anticipate -- do you anticipate that also kind of rapid snapback like we had in 2008 and 2009 this time or is $40, $50, $60 a barrel here for years to come? >> this is going to be in my opinion more of a shape as a u. it's going to be a long drawn out protractive recovery. in my opinion it's going to be quite some time before we see $100 oil again. the reason being we know where the oil is today. it's just a matter of individual well economics and the service cost to drill in complete wells, they have to ajust to the current price. huh so much. hope to chat with you again,

appreciate it. >>. >> also exclusive to power lunch. we're calling it the power city index as the pci's, if you will because you don't have enough acronyms in your life already, america. i'm sure. what we've done is this. we created 29 different city and metro area stock market indexes with the 12 largest publically traded company in each one. >> one of the reasons we are here is that when we ran the numbers for the pci's, the power city indexes over the last three months, of 29 metro markets, only four are down. two of those, houston and dallas, are the worst performers in the united states? in fact, average, the top 12 publicly traded companies in dallas, down about 4.9% as of this morning. houston down about 4.6% as of this morning. so there you go. you don't think this is a negative impact? well, tell that to the publically traded companies that

are also driving a lot of the employment and the wage gain sarah, in texas and in houston. the pci's. yet another reason if you didn't have enough to tune into power lunch. >> all right. >> sweaters, for one. >> here's another one. we're awaiting president obama this hour, brian. about to make a big speech at stanford university. eamon javers is there. what do we expect from the president this afternoon? >> the president is going to talk about his executive order on cyber security. he will sign this executive order here at stanford university in palo alto the heart of sell convalley. it's really about sharing information between the private sector and the government.

>> that sort of thing. that's a little bit of a new look at some of the capabilities of apple pay. we're expecting to hear the president a little bit later. we just saw the white house press pool come in. that's always a sign that the president is here on the premises. we'll wait to see what he has to say, guys. >> all right. eamon, we'll look forward to that. thanks very much. brian. >> all right sarah. thank you very much. we got so much more here live from galveston, texas, including one of the biggest restaurant owners in america that owns a bunch of resorts right here in galveston. the conference center, the golden nugget casino chain. a man with his finger on the pulse of the consumer probably unlike any other. coming up in just -- come on over here. tillman. two minutes. he'll be here exclusively on cnbc. stick around.

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and of course, free same-day delivery. but only through presidents' day at sleep train. sflool we're in galveston, texas, a guy that was not only born here but came in galveston to become one of the most successful entrepreneurs in the restaurant hotel space in the united states. ceo of landries. one of the biggest restaurant owners in the united states. we appreciate you coming out. i know it's your town. it's a big week. you know, you understand the story we're telling. >> absolutely. >> as a guy that has 60,000 employees, you have been a job creator for a couple of thousand employees the last five or ten

years. you take say, an average family in texas that between the two people they make $100,000 a year and everybody has two cars. they're saving approximately $4,000 to $5,000 a year after tax from gasoline. that's putting a lot of eh lot more money. that's why same-store sales are so good now. as oil keeps falling, the 30s will overcome that. >> see, that's -- >> that's what we have to watch for. >> that's my concern. you have your resorts here. i would imagine a lot of your customers the last few years have been people in the oil industry which have had more money in their pocket. they say, you know let's spend an extra night. let's have a little more fun. now you have 25,000 announced job layoffs in the oil and gas industry. i know that's small for the whole country. means a lot to those people. are you seeing any effect at all? >> not at all yet.

remember, everybody is just slowing down. remember all has dropped so quickly that have you get hit across the head with it. we're going to have to see what happens. anywhere below 65 is going to cause layoffs and a lot less cab x to you know new york the oil industry. >> the data has been strong and our viewers know that i have been positive on the american economy for almost four years now. when you see what's hang and you see the wage gains in oil, i worry about the jobs lost but the wages cut. >> remember, rest raubts are going to feel it last okay?

it's the big ticket items that are going to hurt first. this whole area has so much down stream with all the refineries. texas city bay town pasadena. that's all suburbs of houston. lake charles. there are so many refineries like one-third of the gasoline is dortch right here in this area within a couple of hundred miles. you are not going to have these monstrous layoffs. you still stay around $50, $40. you are going to see layoffs. buildings are already being put on hold. >> so you are -- that's my next question. you are hearing about -- now you have -- you have a new casino in lake charles. golden nugget. you also have plans for other buildings. >> right. >> are those going to go forward, or are you going to shelf or delay those? >> i have a huge skyscraper i'm about to build. i'm going through with it. >> you're still going to do it? >> but i'm not going to have the lemplg that i was going to have on it just in kashgs and also

i'm a long-term player. i'm not going anywhere. it's not a strict project finance. we joked that the state bird is the crane. >> bleechbt it is. you can literally count 22 cranes. that ought to tell you something. >> each one of those buildings is new jobs construction jobs. it's the tenant that is go into those places. that's why we're here, and maybe we're a little early. sounds like you're not -- just to wrap it up you're not worried yet. you may not have -- it stays here, then we're okay. >> i'm always looking into the future and if we stay in the 50 to 55 you're going to lose jobs but i think that what everybody is saving when they're saving $5,000 a household, that's going to be all right for us. you do not want oil in the 30s.

if it goes in the 30s, you will see houston go into a lot of the trouble. i saw it in the 1980s. all of a sudden a building would shut down and be empty for ten days. >> interest rates are lower. you don't have a lot of people getting called out there. let's end on a positive note. it's mardi gras week. have a great time. hey -- >> thank you, my man. >> thanks for having us. didn't even know you were here. >> $30 could be bad. got a houston chronicle reporter on sort of the local view as well. we'll have more texas sized stats. we have a market flash from dom chew. what are you looking at? >> brian, earlier we brought you a story that coca-cola had boosted its shares of keurig green mountain. they are still up by less than a percent. we want to clarify details have

that report. it had previously been disclosed that coca-cola was going to have that 16% stake in the company. that happened last year. now, a separate regulatory filing was generated today after the company took delivery of those shares. that actually boosted its physical state to that previously reported 16%. those shares of keurig green mountain they're still volatile in afraid trade. more on power lunch after the break. student.

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>> watching the markets flirting with all-time highs. s&p 500 break agency new record. pulling back here a bit. the dow a stone's throw of 18,000 and the nasdaq hitting 15-year highs. bob passany at the new york stock exchange. a lot of milestones. >> it's good enough for a new high on the s&p. at least intraday. take a look at the s&p. 2,090, it would be a closing high. that's where we are right now. oil did come off its high in the middle of the day and that's some of the oil stocks.

this is one of the big active etf's. that came off the he's. when you see them crawling back right now, and i think that's a factor in holding up the markets. it's been a very big growth bid to the market this week. by a growth bid, i mean tech stocks. materials. discretionary. energy. industrials. all have been out performing. again, another down day for utilities. here's the exchange traded funds. bpu's, van garde. you can see on an intraday basis, this is down but it's been down all throughout the last several days. this is one of those sect orz that's getting a lot of creations these days in the etf because traders are going out trying to short these kinds of etf's. they need to buy shares of it and there's creation of these shares going on. utilities are going down. at the same time people are coming in trying to short them more. very active trade.

>> from first to worst those utilities. thank you, bob. >> keeping an eye on transportation car sales are soaring. there's another part of this industry, though that is also rebounding in the economic recovery. boats, morgan brennan live. one of the world's biggest boat shows in miami, florida. what's fueling it? we're all jealous of you out there. >> hey sarah. you know we are seeing a roer in new boat sales, and what's fueling this is a lot of the the same factors that are fueling other big ticket discretionary items like motorcycles and rv's. basically you have an improving labor market rising consumer confidence. also increasing disposable income, thanks in part to lower gas prices. all of those are contributing to a recovery in boat sales that's been long awaited. the national marine manufacturers association estimates that in 2014 boat sales, sales of new recreational boats, i should say, increased 7% to 8% and it expects a similar increase this year in 2015. now, that's after boat sales, new boat sales, plunged 60% in

the recession. to recapture consumers, boat makers have changed their strategies to better compete with the preowned market, which held stead where i in the down turn. >> manufacturers are both producing less expensive boats to attract the new boater as well as new high-end boats. we're seeing both ends of the spectrum. >> but even though we're starting to see this recovery in the boat industry keep in mind we still have 30% or 40% breaux below the prerecession peak. >> businesses abroad. if we see the u.s. economy begin to slow down and also another thing to keep an eye on is the housing market. we've got the slow choppy uneven recovery in housing market. boat and home sales are actually directly correlated. as you can see behind me we

have a lot of boats on sale here on display and on sale and everybody we spoke to nonetheless says that they are seeing much stronger demand than they have in years past. back to you. >> all right. a bullish time i guess. boat economics. thanks, morgan. >> coming up on power lunch, a texas-sized problem in the lone star state. we're headed back out to brian in galveston to talk about the real impact of falling oil prices. speaking of oil prices the final trade for crossing yet another volatile week for energy. we have the crude flows coming up all when "power lunch" returns. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions

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>> here's your cnbc news update at this hour. apple ceo tim cook is among the ceos attending. it's expected that the president will announce an executive action directing more data sharing on network threads between government and besss. in the meantime the bottom administration announced it will allow cuba's small private business sector to sell goods to the u.s. the exceptions however, include tobacco and alcohol. it's back to the future. google and mattel announce they

will produce a view master for a new generation. they are swapping out the film slide tore an android smartphone. it will sell for $29.99. it will hit stores this fall. coming up on "fast money" find out why one analyst is predicting a netflix spending spree. >> we are nearing the oil close. we're about $52.50 on a barrel of crude oil. up nicely today. we will unless we drop in the next minute or so we should finish with some gains up in crude oil this week. the battalions right now in oil is simple. you have record current supply. record current production coming out of america alone, but you add another 84 drilling rigs come off line in the last week. so traders right now are fighting between.

>> yesterday we were in houston, and we had the opportunity to chat with houston's mayor, and we talked about a lot of things but we also obviously talked about oil, and i asked her if she thought that houston's economy maybe had gotten a little bit too hot and if she was also concerned about the drop in the price of oil. here's what she said. >> what's happened is we've gone from a super charged super heated economy. just really fast growth to a more sustainable and more organic growth. now, if the oil prices stay where they are in the next few years, i might become a little concerned. >> all right. so that's the theme that we have heard over and over again. it's not prices falling even this far this fast. it's how long prices might stay here. it's not fear mongering. whatever it is. everybody from tellman to the mayor of houston is saying low prices for a long time may not be good. a man who knows a lot more about

texas than i do is our own scott cohen because texas has won the top state for business for cnbc i think, a number of times. scott koen is joining us now. scott, i hope that the thesis of why we're here has made some sense, which is that we've created let's call it six million jobs in america over the last five years. about 23% have come from texas. this state is not only its own story. it is actually impacted the overall american story. has it not? >> it has. the rest of the economy is picking up steam. when you talk about rig count and future production -- last year protects t extechnical produced about 458,000 jobs. that's one-sixth the u.s. total for 2014 and, yes, it is also a le-time winner of america's top

states for business. oil and gas should be viewed in a balanced and reasonable perspective. this area's economy is more diversified than is generally recognized. well, the year was 1982, and the speaker was interbank -- interfirst bank chairman elvis mason. good old elvis. five years later his bank was part of the largest bank collapse in u.s. history at the time. >> the fact of the matter is it's only 15% of our growth state product. >> thatsz former governor of texas now rick perry. in 2008 the first year that we named texas america's top state for business. it was in the same month that oil hit a record $145 a barrel.

this could be the fist sustained test to test texas's effort to diversify. it really began with the oil shock in the 198 0z and it could show up in our top state rankings for 2015. we do ten categories competitiveness, and texas, which has never finished below second, and the economy, infrastructure technology, and innovation, and access to capital. texas is a job growth leader of course. economic growth. state budget. all of those are vulnerable to price decline. we chalk that up as a potential negative in our rankings. in infrastructure texas gets the most points for the value of the shipments that go through the state. >> the state is a magnet for research agriculture, health medicine. that's not likely to change. we'll call that a neutral. that's for access to capital. we'll have to see whether capital flows to the state or

flows from it. texas is an economic engine but it faces very serious head winds. not just for the state of texas, but for the national economy. >> yeah. because then i want to be very clear on this point, scott. i'm not sure i have made it clear. maybe that's my fault. my point -- i guess i didn't prove it very well is that texas has played such a big role in the numbers, in the data that if texas slows down could it give us false reads on the date wra? oh look the american economy slowing down. in reality it's doing foo in. >> some of the only wage gains that we have seen for much of the middle class. that's my point. we'll bring sarah eisen in as

well. here's something else that's interesting. look around. i've talked to folks about oil. they said, you know what the panama canal might help us. they're expanding the panama canal, which everyone in houston now thinks will drive more ship traffic and bigger ship traffic and maybe ship building action here. >> who would have thought that the panama canal would have come up? today's show? fwloo isn't it spread unevenly? around some of the big cities like austin and class and san antonio, about big technology hot spots? they are not as dependent, correct? >> on the surface, you're right. let me try and get into all of that.

>> we talked about intra from a structure and the ports in houston particularly the ship channel there. that's huge. that's going to be -- that's going to serve texas well almost regardless and perhaps because of lower energy prices. >> it's something they said going into the prices, and texas with stood that better than a lot of people. if we continue to see lower rig counts and, thereby, lower hiring, it has a ripple effect not just in places like houston, but throughout the state when you talk about housing starts. you are talking about construction. yes, oil is a certain percentage of texas's gross state product, but then you look at construction. other factors, other sectors. >> always good to see you.

especially especially. >> the president is there to talk cyber security. we'll monitor this for you and bring you any headlines as they come, brian. he is going to be meeting a little bit later with ceos of top companies, including tim cook of apple and executives at visa master carped american express, bank of america, and others. when it comes to fighting hacking and cyber crimes which are way out. we'll send it back to you in texas, though for now. >> >>. >> all do the cities effectively. number one was san diego. number two, was austin san antonio. that metro area has actually done -- free scale semiconductor. thank you very much.

a lot her here on power lunch. five analyst calls that you need to know about. we've got a houston reporter to talk more about what the city is feeling with what the moods are rsh i know it's warm and we're in galveston, and mardi gras this weekend, and we can see doll fenz. the dolphins have come out for power lunch. that's all you need to know. back after this.

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zimplt wack fwook power lunch. time for five analyst recommendations on stocks. buy, sell hold whatever. this will be the first street talk that features dolphins in the background. here we go. texas based apatch where i. forgive me for reading this. bank of america, merrill lynch from neutral to an underperform. normally don't like to highlight neutrals, but the fact that they're bringing up apache maybe good news for the equities. they boost their target. $78. it's about 18% up side. stocks up 5% year-to-date. >> the latest cap exspending. next up, i have a texas company for you, brooen. dr. pepper snapple. market perform from underperform at wells fargo. the valuation range has been increased 74 to 76 from $68 to

$66. this has been favorite play for beverages because it is the least exposed internationally to the strong dollar versus say, keek or pepsi. >> i knew you were -- this is the little company that could. sun drop taking down coca-cola. they raised their earnings estimates not once but twice last year. we'll see if they can do it again. all right. next up another texas company. you seeing a trend here? jc penney deutsche bank. deutsche bank adding jcp to a buy list but it's a short-term buy list. almost a trading list. they think lower gas prices and improved consumer confidence may help jcp, but only for a short time. >> it's actually a type of memory trip and.

>> flash memory consumer products. looks like maybe that market is over supply concerns are being over done. okay. finally, the under the radar name of the day. this stock is always one that's under the radar. maybe not a household name if you will. today it's amtech. ame, the ticker symbol. airplane cockpit displays. rw baird from an outperform. they have a $56 target. it's about 10% up side. not a huge amount. hey, 10%. maybe this market. may not end up being so bad. >> electronics manufacturer. yeah, this is the company, traces back to 1930. how about that, brian? >> >>. >> that's it for street talk.

we have more from galveston, texas brshgs we go away. what could be on the front pages tomorrow? right now i want you to listen to this. >> this is the energy corridor of houston, and you know in texas, everything is bigger, including the numbers. listen to this. 300 major corporations. shell, bp conco phillips. 91,000 employees. 5.5 million square feet of new commercial and residential office space being built, which is already 65% leased. more "power lunch" from texas. (lowe) directv is wireless, so you can put your tvs anywhere without having to look at those ugly wires and boxes in every room. (hs lowe) cable isn't wireless but you just gotta put something in front of them. (lowe) i'm still in awe of how great my tvs look. (hs lowe) and i'm still captain of the team. (lowe) don't be like this me. get rid of cable and upgrade to directv. call 1-800-directv. i make a lot of purchases for my business. and i get a lot in return

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>> just how important is the oil business? we know it's important, but did you know there's a museum an off shore retired drilling rig called the ocean star here in galveston that is now used for corporate classes and education? you can learn all about not only what they used to do but how the technology is dramatically changed over the years. this is the only publicly accessible off shore drilling rig in existence in america at least. they have a museum even in the water. >> that's kind of a fun thing. the ocean star is right over there. the technology has changed so much. when that thing was at a couple of hundred feet of water, they could drill down a couple of hundred feet. now they're going regularly more than 10,000 feet down.

>> if get down to galveston, check out the ocean star. >> good to know. >> thanks brian. >> meantime, want to take you out to california stanford university. we have eamon with an update on the president who took the podium just a few moments ago. what has he said so far? >> president obama talking about cyber security just telling the crowd within the past couple of minutes that american critical instra structure at risk including the u.s. airport system and saying nonetheless, the u.s. is prepared to deal with this threat which is costing american jobs. the president comes here at a little bit of an awkward time. we've got the ceo of apple, tim cook, that's here and just spoke a few moments ago as well as ceos of major finance and other

technology couples. that's being seen as evidence as some of the tension that exists between silicon valley and the federal government in the wake of edward snowden nsa spying revelation. part of what the president is doing here is extending an olive bramplg to the business community and technology community. they're talking about how well they're positioned and encouraging a partnership between the business community and the technology community and the federal government. all of that is part of the executive order that he is signing today. designed to encourage the information sharing back and forth. >> i'm just curious about the politics of all of this. how political is this for president obama? >> yeah. it's a good question. the executive border strategy by

the president and the white house is sort of born of frist rags with congress's inability to pass anything that the president would like to see. they can pass plenty of things that he would not like to see? they've adopted this go it alone strategy of using the federal bur ok sis, using the executive orders to get what they want. >> it's a threat to american jobs and a threat to the american economy. they would like to see something. i've talked to some white house spokesmen who were out here last night. i just asked them a a little bit about what their expectations were for congress to pass a cyber security bill. they sound optimistic when you talk to them. thank you very much for the wrupt. we'll continue brian, to bring

you headlines as they pros from president obama who is still speaking at stanford university. for now back over to you in texas. >> crisp next what is maybe next for texas? listen to this. >> texas is fine now. what happens if oil stays at these price levels for a couple of years? the houston chronicle reporter with the local view on just that. coming after the break on "power lunch."

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high earlier, then it lost some of the earlier gains. as you can see climbing back up with the dow up 20 points. the russell 2000 index of small company companies also flirting with a record high. can we check the bond market here because we were seeing the 10-year above 2%. first time we've seen that in a while. don't think we have the bond market right now. there we go. the 10-year yield above 2%. still up there. we're also seeing a rally in gold softness in the u.s. dollar and that russell up 0.4%. so what do money and meditation have in common? pair of siblings found out when they launched a business based on their lifelong passion for yoga. >> there were a lot of business ideas discussed on the dinner table. >> we are the co-founders of yoga smoga.

>> but we used to work on wall street. >> we grew up in india in a region up in the himalayas where yoga comes from. i moved to the united states for my education, started work at goldman sachs. >> i started at merrill lynch. >> on a trip back to india in 2009, i sort of realized that yoga wasn't reflected properly in the united states. what's out there is not going to cut it. somebody should be doing something really elegant and beautiful in the yoga space and that's when i started developing a business plan. >> it took about four years to develop the product and research it. >> we went out and found out everything there was to know about fiber technology. >> it was a lot of cold calling, finding who the players are out there. >> we were self-funded. the first production run came into my apartment. when we launched our website, we thought we had ample product for one year and in three weeks we were completely sold out. >> we would get hundreds of

e-mails of people complimenting the product. >> last year we started rolling out our retail stores greenwich, connecticut being the first store. our second store was on the sunny coast in los angeles and we expect 100 stores by 2018. the part about being siblings -- >> we operate on the same wave length. >> the name yogasmoga is a nod to our indian culture but it's common to rhyme similar things. >> if you came to tea for my mom's place, she would ask you do you want some shy chai which means do you want tea and cookies. >> our dream would be to have a public offering. >> i don't think it's the wildest dream. we are following a passion. it is definitely more valuable and more satisfying than my wall street job. >> having your only sibling come along for the ride it cannot get better than that.

>> and yogasmoga products are made entirely in the u.s. they will open ten stores this year. let's get back out to brian in galveston, texas. >> and we escaped the cube, sara. we got out. sweater and jeans. >> i love that series. no yoga pants. >> i can't do any of the poses. i think i might have just ripped the jeans. we have our friend ron holiwellyholywell. you're here every day. are we fearmongering? >> i don't think you're fearmongering. we have spent the last week at the chronicle sort of talking to a cross section of business owners from around town hotel operators, restauranteurs, car dealers. there's a sense of people being on edge. i don't think too many people in houston are feeling the real pain of the slowdown in the energy sector yet but they're definitely bracing for it. >> the lexus dealer we talked to sold 500 cars it was a record.

same with joe our camera gaiuy, sold his house in six hours. houston has been red hot. you haven't seen any signs of a slow downette. yet. >> not yet. houston has benefited from the energy boom. we've added more than half a million jobs but there's a sense that job growth could be cut in half. we talked so some financial planners who work with the guys in the energy industry and they're saying don't go buy that new car -- >> you're hearing financial advisers saying cool it a little bit on the spending? >> absolutely. that has a trickle out effect to the rest of the houston economy. the restaurant owner says we've had double digit sales growth that's probably going to stop. the auto dealers are worried about losing some fleet sales. >> you're getting a front page story in the chronicle on sunday -- without revealing it too much so you can sell some

papers, what is the theme of it? >> i think the theme is that, you know, houston is not going to be in the dumps but it's been red hot for five years and i think, you know, people are going to be in for a reality check in the next few months. >> it's amazing, ryan. i have this blessed job and this great opportunity to go all over the country all the time, and there's no place i have seen on the scale that i have seen like houston. the growth. i mean, tillman told us earlier cranes everywhere. it's just -- i don't think the rest of the country appreciates the spectacular jump in houston's economy the last five years. >> it's one of the only cities in the country where people cheer when oil prices and gas prices go up. >> what's the old bumper sticker, drive 70 freeze an yankee. we don't care about high oil prices but we do. >> exactly. the city -- everyone in houston knows that it's benefited enormously from what's happened in the last few years. people aren't terrified but i think it would be naive to think if we benefited on the way up there's not going to be an effect on the way down.

>> and i want to give our viewers an anecdote again. exxon is building a campus so big that they have to put in a new highway? >> it's going to be like its own city north of houston essentially. >> in the area of the woodlands but they have to build a new road and somebody said they're not being a road they're building a new highway. that's how many employees will be working there. and they're bringing a lot of people from d.c. and virginia where mobile yas headquartered. >> the job alsolosses receivewe've seen seem to be focused in the field. we haven't seen an effect on the office tower people the geologists, the attorneys, the accounts. >> ryan, thank you. look forward to reading your article on sunday, "houston chronicle." >> thank you. >> 5.5 million square fees being

built in a place called the energy corridor. the new stuff 65% leased. houston is still going gangbusters. i'm going to end with some positive things about houston. number one, the economy is only half as reliant on oil and gas as it was back in the '80s. back in the '80s interest rates were out of control. they are low now and the economy of texas and the economy of texas is much more diversified. these pelicans they terrify me. >> so many animals in your live shot. the other positive thought to end it on is have we seen a bottom in oil at least for the energy jobs and for the energy industry? today we went above $60 on the price of brent. it was another positive week in what has been such a volatile one. the question remains has this been the bottom or are we headed back lower like a lot of wall street analysts say? >> you know, i am with all due respect to every guest that i appreciate coming on the program, i don't know if anybody can really know where oil is going. >> right.

just like nobody predicted the collapse. it's a good point. >> well, listen i know where i'm going and that's away. so thank everybody for watching "power lunch." i appreciate -- >> travel safe. >> i will. i'm going back to the cold northeast. thank you for watching "power lunch." i'll see you back in studio on tuesday. "the closing bell" starts right now. and welcome to gelt to close out this friday this week. i'm kelly evans at the no, stock exchange. >> and i'm bob pisani in for bill griffeth. the s&p 500 on track to close at a new high as the market posts its second straight week of gains. >> the dow is trying to close above 18,000 for first time this year and right now it's less than 100 points away from a new high. less than about 50. so you can see all-time closing high or the dow is 18,053. right now we're looking to see if the index can close above 18,000. we're at 18,001 to